Kibaran Resources Limited: German Government Loan Guarantee

Kibaran Resources Ltd. (ASX:KNL) ('Kibaran' or the 'Company') is pleased to report that it has received confirmation of "in-principle eligibility for cover" for the Epanko Graphite Project ('Epanko') by the German Government.


Key Highlight:

- Major milestone in financing process

With this confirmation Kibaran has met the first important condition to receive an UFK-guarantee from the German Government in combination with financing by German state-owned KfW IPEX-Bank.

KfW is one of the world's leading development banks. It's subsidiary KfW IPEX-Bank has a strong track record in the mining sector, including in Africa.

Kibaran through KfW IPEX-Bank and with the support of its off-take customers ThyssenKrupp AG and a European Trader, has been investigating the Company's eligibility for an Untied Loan Guarantee - Garantie für Ungebundene Finanzkredite ('UFK'). The Company is pleased to report that KfW has received confirmation of in-principle eligibility for cover for the project. The confirmation is based on ThyssenKrupp AG and its European trader supplying the German industry with graphite.


BACKGROUND ON UFK FACILITY

The German Federal Government provides UFK coverage in the form of loan guarantees for loans awarded by lenders to the financing of eligible projects. It provides lenders insurance against commercial and political risk.

Eligible projects contribute to the supply of critical natural resources to Germany in the form of a long-term off-take contract between the borrower and a German off-taker. The project has to be economically viable and comply with international environmental and social standards (e.g. Equator Principles).

Kibaran Managing Director, Mr Andrew Spinks commented: "We are very pleased to have successfully achieved the first major milestone in our debt funding process. Confirmation of the in-principle eligibility for cover under an Untied Loan Guarantee follows six months of negotiations and provides a level of certainty for the bank to provide debt funding for the develoment of Epanko. This is significant as it strengthens our strategic alliance with Germany, which is the world's fourth largest economy and is the leader in the development of graphite in the industry, having developed spherical graphite for the battery market, renewables and other uses for emerging markets."

KfW IPEX-Bank is continuing to assess lending to Kibaran for UFK supported debt financing for the construction of our graphite project in Tanzania.



For further information, please contact:

Managing Director: Andrew Spinks
CFO/Company Secretary: Robert Hodby